Bank of America has updated its forecast for Federal Reserve rate cuts, predicting a 25 basis point reduction at the December 2025 meeting, followed by two more cuts in June and July 2026. This outlook is driven by weak labor market conditions and expected leadership changes at the Federal Reserve, which may lead to a more accommodative monetary policy. The bank anticipates the target rate range will be adjusted to 3.00% to 3.25% following these cuts.